ESSENTIAL READING FOR TRAVEL INSURANCE INDUSTRY PROFESSIONALS WWW.ITIJ.CO.UK DECEMBER 2010 • ISSUE 119 Travel CUE call to arms French insurer Groupama has called on its fellow travel insurers operating in the UK to collaborate on the launch of the latest initiative that is aimed at reducing the level of fraud seen in the UK’s travel insurance industry. Sarah Watson has the story The Travel Claims Underwriting Exchange (CUE) initiative is led by the Insurance Fraud Bureau (IFB) and IDSL/Polaris, and is being created in a bid to allow insurers to share data on suspect claims. As we explain in our feature on this topic on page 28, the CUE is not the only avenue insurers can take to share data with each other, as rivals appear on the market. Groupama counter fraud manager Andy Pagett said: “Individual databases could be damaging to the various industry initiatives we are currently pursuing. It means we cannot guarantee the necessary compliance and governance around the sharing arrangements and this dents our credibility with the Information Commissioner at a time when we are engaging them on this matter.” He continued: “What we need to recognise is that a travel insurance claim is often the fi rst attempt at fraud by the opportunistic fraudster. If they Licensing milestone reached in US continued on p4 The US Travel Insurance Association (UStiA) has travel insurance, while at the same time improving states to adopt one common licensing approach, achieved a milestone in the quest for adoption of the protection given to customers. replacing the old fragmented system. In the states a uniform licensing standard for travel agents and Jim Grace, president of the UStiA, said: “By that adopt the amendment, travel retailers that sell other sellers of travel insurance in the US. Mandy amending the current licensing standards, we have insurance will be allowed to offer and disseminate Aitchison reports on the new guidelines made major progress toward reducing licensing their products without a licence, as long as specifi ed burdens for retailers offering travel insurance. At the consumer protection requirements are met. Under Acting on recommendations from the UStiA, and same time, the new standard will, once implemented the new NAIC Standards and Guidelines, allowable with the assistance of the American Society of in all states, offer greater transparency and consistent non-licensed activities would include offering general Travel Agents (ASTA), on 21 October the National consumer protection.” information such as descriptions of coverage and Association of Insurance Commissioners (NAIC) Previously, each travel agency, travel agent and others pricing, as well as processing applications and adopted language for a new Uniform Licensing selling travel insurance cover had to be licensed collecting premiums, so long as the insurance Standard and Implementation Guideline that would in the states in which they conduct their business. provider (managing general agent and nationally signifi cantly streamline the licensing process for selling The new NAIC guidelines lay the groundwork for licensed producer) whose continued on p4 2 NEWS IN THIS ISSUE ITIJ CONTRIBUTORS REGULARS Tatum Anderson is a freelance international health and technology business writer with a decade of experience. Her News continued 4 specialist subjects include emerging markets, business, health and public health policy. She has written for a variety of publications, Editorial blog 6 including The Economist, Guardian Weekly, BBC News Online, the Company brief 8 Wall Street Journal Europe and the Financial Times. Insurance matters 9 Gerry Bolger MHM, RN, is a freelance in-flight nurse Health matters 13 and policy advisory on pressure ulcers at the Department of Travel matters 14 Health, England. He is also the programme director for the Quality in Caring work within the Chief Nursing Officer’s (CNO) IPMI news 16 Directorate at the Department of Health. As well as being a Cross-border care 18 registered nurse, Gerry also holds a Masters’ degree in health management. He formerly led the Royal College of Nursing Air ambulance news 22 In-flight Nurses Association as their chair for eight years and has Service directory 39 been involved in clarifying issues on medicines administration in that role. Grapevine 46 On the move 47 David Craik has been working as a freelance journalist for the past six years and writes for national newspapers and magazines. This includes shifts on the Daily Express City and Business desk where he covers market reports including the insurance sector. He has experience writing news and features on a wide range of subjects including insurance, aviation, transport, recruitment, IT, personal finance and small business. FEATURES Feature: Is there strength in numbers? 24 ITIJ asks if insurers working together actually works Feature: Digital marketing – part 1 28 Are travel insurers using all the tools available to them? Assistance & Healthcare World Markets: Uruguay 32 A small South American country with mixed healthcare facilities ITIJ TEAM Editor-in-chief: Ian Cameron ITIJ Published on behalf of: Voyageur Publishing & Events Ltd, Editor: Sarah Watson Voyageur Buildings, 43 Colston St, Bristol BS1 5AX, UK Voyageur Buildings, 43 Colston Street, Bristol BS1 5AX, UK Title editor: Mandy Aitchison Telephone: +44 (0)117 922 6600 The information contained in this publication has been published in good faith and Copy editor: James Paul Wallis every effort has been made to ensure its accuracy. Neither the publisher nor Voyageur editorial dept: Ext. 3 Ltd can accept any responsibility for any error or misinterpretation. All liability for loss, Conference manager: Denise Clements disappointment, negligence or other damage caused by reliance on the information advertising dept: Ext. 1 contained in this publication, or in the event of bankruptcy or liquidation or cessation Production: Kirsty Diclaudio of the trade of any company, individual or fi rm mentioned is hereby excluded. Helen Watts fax: +44 (0)117 929 2023 Advertising sales: David Fitzpatrick Printed by Pensord Press, South Wales, United Kingdom email: [email protected] Copyright © Voyageur Publishing 2010. Materials in this publication may not be reproduced in any James Miller web: www.itij.co.uk form without permission Finance: Elspeth Reid INTERNATIONAL TRAVEL INSURANCE JOURNAL ISSN 1743-1522 Louise Goddard Would you like to make a comment? Design: V Creative Design WOULD YOU LIKE TO SUBSCRIBE? Please get in touch with Ian Cameron, vcreativedesign.co.uk VISIT www.itij.co.uk Editor-in-Chief of ITIJ on +44 (0)117 922 6600 ext205 InternationalInternational TravelTravel InsuranceInsurance JournalJournal ■ www.itij.co.uk 4 NEWS Delays highlight the importance of cover US-based Travel Insured International has said that economy, includes $16.7 billion in extra costs paid two recent government reports serve as a cautionary by passengers. The Associated Press noted that reminder to travellers about the value of travel ‘researchers looked more broadly at costs associated insurance. A new economic study released by the US with flight delays, including passengers’ lost time Federal Aviation Administration (FAA) has documented waiting for flights and then scrambling to make other the hefty cost to passengers of flight delays. In addition, arrangements when flights are cancelled’. US Department of Transportation statistics showed The Department of Transportation (DOT) a sharp rise in September 2010 flight cancellations as separately reported a marked September 2010 airlines complied with the three-hour tarmac delay increase in flight cancellations as airlines complied penalty rule. The numbers support the need for travel with the May 2010 Tarmac Delay rule that fines insurance, said the company, to protect travellers from carriers $27,000 per passenger if they hold unexpected costs. passengers on a plane on the ground for three The FAA study takes a detailed look at 2007 flight hours or more. The DOT reported that airlines delay costs, the last year for which full statistics cancelled 0.9 per cent of their September 2010 Air Passenger Duty comes into force are available. The report states that trip delay- flights, compared to 0.6 per cent cancelled in related costs, a $33-billion yearly hit to the overall September 2009. The first of November marked the first day of the from the airline as it is only payable if the traveller new, increased Air Passenger Duty (APD) paid by departs. Unfortunately, many airlines, particularly UK travellers. The APD is divided into four bands budget ones, charge an administration fee, which (A, B, C, and D), and each one has seen a rise, can be more than the APD itself.” He continued: InsureandGo in a tangle with HMRC although long-haul travellers in band D will see the “The cancellation section of a travel insurance It has been reported in Post Magazine that UK- and penalties, the group will be required to raise biggest increase. The shorter the flight, the smaller policy typically provides cover for travel costs that based travel insurance intermediary InsureandGo additional capital to maintain a solvency balance sheet the increase – for example, a passenger travelling to are ‘irrecoverable’ or ‘not recoverable elsewhere’. warned that it would have to raise millions of pounds and continue to meet regulatory capital requirements Egypt, which is a band-B destination, will pay an extra Also, some policies are very explicit and make in capital if it were to lose an appeal against Her and, therefore,